LG H&H (051900) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales were 1,698bn KRW, down 1.8% year-over-year; operating profit was 142.4bn KRW, down 5.7% year-over-year; net profit declined 8.5% year-over-year to 103bn KRW.

• Beauty, HDB, and Refreshment segments contributed 41.7%, 33.8%, and 24.5% of sales, respectively.

• Overseas sales grew 4.2% year-over-year, now accounting for 32% of total sales, with notable growth in Japan (+23.2%).

• The company maintains a strong domestic market position and is expanding global reach, especially in luxury beauty and daily beauty brands.

Financial highlights

• Gross profit decreased 5.3% year-over-year to 878bn KRW; gross margin for Q1 2025 was 51.7%, down from 53.6% in Q1 2024.

• SG&A expenses fell 5.2% to 736bn KRW.

• EBITDA for Q1 2025 was KRW 203.3 billion; depreciation and amortization totaled KRW 60.97 billion.

• Cash and cash equivalents at quarter-end were KRW 1,313.2 billion, up by 60bn KRW from year-end 2024.

• Dividend payout for the period was KRW 58.8 billion; basic EPS was KRW 5,860.

Segment performance

• Beauty: Sales fell 3.4% year-over-year to 708.2bn KRW (41.7% of total); operating profit dropped 11.2% to 58.9bn KRW, impacted by declining DFS sales but offset by growth in Japan and online channels.

• HDB: Sales rose 2.2% year-over-year to 573.3bn KRW (33.8%); operating profit increased 13.7% to 37bn KRW, driven by overseas demand and premium product launches.

• Refreshment: Sales declined 4.1% year-over-year to 416.4bn KRW (24.5%); operating profit fell 10.8% to 46.9bn KRW due to weak domestic beverage demand and high raw material costs.